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A query is made as to whether the granting of loans for the purchase of housing by a company to its employees constitutes a benefit-in-kind. The DGT responds that if the applied interest is the legal interest rate, there is no economic benefit or income in kind.
Question posed: Existence of benefit-in-kind and valuation.
Obtaining a loan may constitute income in kind if it entails an economic benefit for the employee. In the case of loans with interest rates lower than the legal interest rate, the valuation of the income is the difference between the interest paid and the legal interest rate. If the loan interest is maintained at the current legal interest rate, there shall be no benefit-in-kind.
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